Facts of the Case

The petitioner, Travancore Cocotuft Private Limited, Coir Park, Thiruvizha, Cherthala, Kollam, Kerala, represented by its Director Sri P. Mahadevan, moved a series of applications between 22.12.2021 and 10.02.2023 (Ext.P1 and Ext.P1(a) to P1(e)) before the 1st and 2nd respondents, the Deputy Commissioner and Assistant Commissioner (Customs), Willingdon Island, Kochi, relying on TR6 challans (Ext.P5) evidencing payment of IGST. Separately, the 3rd respondent, the Director General of GST (Intelligence), Kochi Zone, issued summons dated 17.11.2021, an audit enquiry dated 26.11.2021 and an inspection report dated 17.12.2021, and later recorded the petitioner's statement on 14.06.2023. On 26.09.2023, the 3rd respondent issued a show cause notice (Ext.P7). The petitioner filed a reply (Ext.P8) and an additional statement before the 4th respondent, the Additional Commissioner, General GST and Central Excise, Thiruvananthapuram (Ext.P9), and a personal hearing was held on 01.12.2023 (Ext.P10). The same day, it also addressed a letter to the 5th respondent, the Commissioner (Customs) (Ext.P11). The petitioner then approached the High Court by way of this writ petition.

Issues Involved

  1. Whether the pendency of the show cause notice initiated by the DGGI could operate to keep the petitioner's applications before the Customs authorities, culminating in Ext.P11, undecided.
  2. What directions ought to follow given that the controversy raised was already covered by the Court's judgment in a connected matter, WP(C) No. 35947/2023.

Petitioner's Arguments

  • The petitioner had made repeated representations over nearly two years to the Deputy and Assistant Commissioners (Customs), without a final decision being taken.
  • It was simultaneously subjected to summons, an audit enquiry, an inspection, recording of statements and, eventually, a show cause notice by the DGGI, to all of which it duly responded, including attending the personal hearing.
  • Its grievance, reflected in Ext.P11 addressed to the 5th respondent on the day of the personal hearing, was that its pending application ought to be decided, the controversy being identical to that already adjudicated by the Court in WP(C) No. 35947/2023.

Respondent's Arguments

  • The order does not record any specific submissions on behalf of the respondents. The DGGI had, in the meantime, proceeded to issue the show cause notice (Ext.P7) pursuant to its summons, audit and inspection, and the 4th respondent had conducted a personal hearing on the petitioner's reply.

Court Order / Findings

  • The Court held that the controversy involved in this writ petition is covered by the judgment passed in WP(C) No. 35947/2023, and disposed of the present petition in terms of that judgment.
  • The 1st and 2nd respondents were directed to dispose of the Ext.P11 application in accordance with the judgment in WP(C) No. 35947/2023.
  • Till such decision is taken, further proceedings pursuant to Ext.P7, the show cause notice issued by the DGGI, were directed to be kept in abeyance.

Important Clarification

  • Where an identical controversy has already been decided by the Court in a connected writ petition, a subsequent petition raising the same grievance can be disposed of by directing the authorities to decide the pending application in terms of that earlier judgment, without the Court re-examining the merits afresh.
  • To avoid the assessee being prejudiced by parallel proceedings, the Court kept further action on the show cause notice in abeyance until the customs authorities decide the pending application, rather than allowing both tracks to proceed simultaneously.

Sections Involved

  • Integrated Goods and Services Tax (IGST) Act, 2017 — the TR6 challans (Ext.P5) evidenced payment of IGST forming the subject matter of the applications made to the Customs authorities.
  • Central Goods and Services Tax Act, 2017 — the summons, audit, inspection, statement recording and show cause notice (Ext.P7) were issued by the DGGI and the Additional Commissioner, GST and Central Excise, in exercise of powers under this Act.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — the petition was not decided on independent merits but by applying the ratio of the connected judgment in WP(C) No. 35947/2023, with the customs authorities directed to decide the petitioner's pending application and the show cause notice proceedings kept in abeyance in the meantime.

Related Case Laws

WP(C) No. 35947/2023 (High Court of Kerala) — the connected judgment in terms of which the present petition was disposed of, and which sets out the underlying reasoning not repeated in this short order.

Case Details

  • Court: High Court of Kerala at Ernakulam
  • Case No.: WP(C) No. 41324 of 2023
  • Case Title: Travancore Cocotuft Private Limited vs Deputy Commissioner (Customs) and Others
  • Coram: Hon'ble Mr. Justice Dinesh Kumar Singh
  • Date of Order: 08.12.2023
  • Counsel for Petitioner: Adv. Anil D. Nair, Adv. Telma Raju, Adv. Aaditya Nair

Link to Download the Order

Download the full judgment (PDF)

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